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Dmitry [639]
3 years ago
7

Suppose the Green Elf Corporation's common stock has a return of 12%. Assume the risk-free rate is 4%, the expected market retur

n is 9%, and no unsystematic surprise affected the Green Elf's return. The beta for the firm is:
Business
1 answer:
Flura [38]3 years ago
5 0

Answer:

1.6

Explanation:

Given that,

Stock has a return = 12%.

Risk-free rate = 4%

Expected market return = 9%

Stock return = Risk free return + Beta of Stock × (Market return - Risk free return)

12% = 4% + Beta of Stock × (9% - 4%)

8% = Beta of Stock × (5%)

8% ÷ 5% = Beta of Stock

1.6 = Beta of Stock

Therefore, the beta for the firm is 1.6.

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Total profit is maximized a. where the difference between total revenue and total cost is greatest. b. at that output level wher
Bess [88]
I believe that the correct answer is b
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3 years ago
Your friend brought up an investment opportunity that will generate cash flows of $5,000, $5,300, and $6,000 next three years, r
ahrayia [7]

Answer:

The most I could pay for the investment is $12,960.09  

Explanation:

The maximum a rational investor could pay acquire an investment is the present value of all future cash flows receivable from the investment.

In the case, the present of all cash flows is calculated thus:

Years  Cashflows [email protected] 12% PV

1          5000 0.892857143  4,464.29  

2          5300 0.797193878  4,225.13  

3           6000 0.711780248  4,270.68  

   Total of present values               12,960.09

The discounting factor is calculated using the formula :

1/(1+r)^n where r and n are rate and number of years respectively.                                          

8 0
3 years ago
In 2002, a Swedish home electrical appliance manufacturer decided to use the same advertising message wherever it advertised aro
ella [17]

Answer:

Global advertising

Explanation:

Global advertising -

It refers to the method of popularizing a specific goods or services to the whole world , is referred to as global advertising .

Only specific companies or business are able to advertise their products on the global platform and earn some profit .

The example are -

Microsoft , Coca cola , McDonald's etc .

Hence , from the given scenario of the question ,

The correct answer is Global advertising .

7 0
3 years ago
The marginal seller is the seller who Group of answer choices cannot compete with the other sellers in the market. would leave t
Sophie [7]

Answer:

would leave the market first if the price were any lower.

Explanation:

Utility can be defined as any satisfaction or benefits a customer derives from the use of a product or service.

Thus, any satisfaction or benefits a customer derives from the use of a product or service is generally referred to as a utility.

In Economics, The law of diminishing marginal utility states that as the unit of a good or service consumed by an individual increases, the additional satisfaction he or she derives from consuming additional units would start decreasing or diminishing as the units of good or service consumed increases.

A marginal seller refers to an individual or business firm that is most willing to sell his or her goods and services at a price that is typically equal to their economic cost while forfeiting producer surplus.

A producer surplus is the amount a buyer is willing to pay for a good minus the cost of producing the good.

Hence, a marginal seller is the seller who would leave the market first if the price were any lower.

8 0
3 years ago
What is a question that should be asked about accounts payable when forecasting?
charle [14.2K]

Answer:

In forecasting accounts payable, one of the relevant questions is:

What is the cash conversion cycle?

Explanation:

The variables used in computing the cash conversion cycle include accounts receivable days, inventory turnover days, and accounts payable days.  Specifically, cash conversion cycle (CCC) is the period in days that it takes the firm to convert cash into inventory, then into sales, and finally back into cash.  To gain a good understanding of accounts payable, one should always consider the major inclusive metric.

3 0
3 years ago
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